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V1584-19 27 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por reinversión

Reinvestment exemption for principal residence may apply even if the taxpayer dies before completing the purchase

A taxpayer sold her principal residence and had a purchase agreement for a new one, but passed away before formalising the acquisition. A query has been raised regarding whether her heirs can apply the reinvestment exemption.

The question raised

Possibility of applying the reinvestment exemption regarding the sale of the primary residence in the mother's Personal Income Tax settlement.

The DGT's ruling

The death of the taxpayer cannot be considered a failure to comply with the reinvestment requirement, due to the extinction of legal personality and the cessation of the obligation to perform future actions. Therefore, the reinvestment exemption provided for in Article 38.1 of Law 35/2006 is applicable to the capital gain obtained from the transfer of the deceased's primary residence.

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